New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
Navigating Social Security While Working: Essential Insights for Entergy Employees
Oil prices between $50 and $120 per barrel with 80% annualized volatility have created ripple effects throughout the economy over the past six months. Fleet diesel costs and inflation-driven rate case pressures create indirect but meaningful exposure to sustained crude price swings. Entergy employees benefit from financial strategies that anticipate energy-driven economic shifts, building portfolios resilient enough to weather the inflation and market volatility that oil price swings create. Working with a financial advisor can help you position your planning strategy for sustained energy price uncertainty.
65 is the new 55 when it comes to retirement from your Entergy firm, meaning you may have the option to work at the same time you claim Social Security benefits. If you retire from Entergy and get a part-time job or some consulting income, your paycheck can affect the amount you receive monthly, the amount you owe in taxes for the year, and your Medicare premiums.
Reasons abound to keep working, but for most, it simply comes down to math and to emotions.
With a longer lifespan on average, many of our clients from Entergy are concerned they won't have enough savings to last their lifetime, and understandably so.
If you plan to keep working after retiring from your Entergy while collecting Social Security, here is what you need to keep in mind:
If you start your Social Security benefits before your (FRA), or full retirement age (which is between 66 and 67, depending on the year you were born), you will end up with a permanently reduced monthly benefit because of the early age. If you claim at the earliest possible age of 62, your monthly checks could be up to 30% less than at your full retirement age(FRA). 1
There will also be an earnings test until you reach that full retirement age(FRA): If you have earned income in excess of $24,480 in 2026, your benefits will be reduced by $1 for every $2 of earned income over the limit.
The year you reach your full retirement age(FRA), the earnings test limit is $65,160 in 2026, and your benefits will be reduced by $1 for every $3 of earned income over the limit.
These reduced benefits do not just 'disappear'. If your benefits have been reduced due to earnings, your monthly Social Security check will be increased after your full retirement age(FRA) to account for benefits withheld earlier due to excess earnings.
Note: Earned Income does not include investment income, pension payments, government retirement income, military pension payments, or similar types of 'unearned' income.
'Earned Income' includes wages, net earnings from self-employment, bonuses, vacation pay, and commissions earned, because they're all based upon employment. Once you reach your full retirement age(FRA), there is no earnings test and no benefit reductions based on earned income.
Tax Impacts
Separate from the earnings test, Social Security benefits themselves are subject to federal income taxes above certain levels of 'combined income.' Combined income generally consists of your adjusted gross income (AGI), 2 nontaxable interest, and one-half of your Social Security benefits.
- For individual filers with combined income below $25,000, none of your Social Security is taxed. For joint filers with combined income below $32,000, none of your Social Security is taxed. (See: Income Taxes And Your Social Security Benefit for more information.)
- For individual filers with combined income of $25,000 to $34,000, 50% of your Social Security benefit may be subject to federal income taxes. If your combined income exceeds $34,000, then up to 85% of your Social Security benefits could be taxed.
- For joint filers with combined incomes of $32,000 to $44,000, 50% of your Social Security benefit may be subject to federal income taxes. If your combined income exceeds $44,000, then up to 85% of your Social Security benefits could be taxed.
Regardless of your income level, no more than 85% of your Social Security benefits will ever be subject to federal taxation.
Additionally, 11 states also tax your Social Security benefits. The rules and exemptions vary widely across this group so it is wise to research the rules for your state or consult with a tax professional if you're one of our Entergy clients that this applies. 3
State Social Security Tax
The eleven states below impose a tax on Social Security benefits to varying degrees.
Colorado
Colorado's pension-subtraction system exempts up to $24,000 in pension and annuity income, including some Social Security benefits. The exemption is based on your age, starting at age 55.
Connecticut
Connecticut partially or fully exempts Social Security benefits, based on a person's filing status and income.
Kansas
Kansas exempts Social Security benefits from state tax, based on the taxpayer's income. Your Social Security benefits are exempt from Kansas income tax if your federal adjusted gross income (AGI) is $75,000 or less, regardless of your filing status.
Minnesota
Minnesota partially taxes Social Security benefits. The state allows a subtraction from benefits ranging from $2,725 for married taxpayers who file separately, to $4,260 for single taxpayers, to $5,450 for married taxpayers who file jointly. The rule is subject to phaseouts starting at incomes of $82,770 for joint married filers, $41,385 for married taxpayers filing separately, and $64,670 for heads of household and single filers. The subtraction is less for these incomes and eventually phases out entirely as you earn more.
Missouri
Missouri exempts Social Security benefits from state tax, provided that the individual is age 62 or older and has adjusted gross income of less than $100,000 if married and filing jointly, or $85,000 for all other filing statuses. Those who earn more than that might qualify for the exemption if they're disabled.
Montana
Montana asks residents to use the Montana Individual Income Tax Return to determine the portion of Social Security benefits that's taxable by the state (page 5 and page 6). That might be different from the federal amount.
Nebraska
Starting, Nebraska began phasing out taxation of social security benefits. The state allows a deduction for Social Security income that's included in your federal adjusted gross income if your federal Adjusted Gross Income(AGI) is less than or equal to $61,760 for married couples filing jointly, or $45,790 for all other filers.
New Mexico
Starting, the state of New Mexico changed rules that would exempt most seniors from paying tax on social security benefits. This exemption is available to taxpayers with the following income thresholds , $100,000 for single filers, $150,000 for married filers filing jointly, and $75,000 for married filers filing separately.
Rhode Island
Rhode Island has an exemption on Social Security taxation for those who have reached full retirement age as defined by the IRS. Eligible taxpayers must have federal Adjusted Gross Income(AGI)s of $88,950 if single, or $111,200 if married and filing jointly.
Utah
In late 2019, Utah adopted a sweeping tax bill that includes a tax credit for Social Security benefits that are included in a taxpayer's federal adjusted gross income. The Adjusted Gross Income(AGI) thresholds are $25,000 for married filing separately, $50,000 for married filing jointly, and $30,000 for single filers.
Vermont
Vermont previously followed the federal rules for determining the taxable portion of Social Security benefits, and then it adopted exemptions for taxpayers with incomes below $25,000 for single filers and $32,000 for other statuses. Benefits for those with higher incomes are taxed at incremental levels, with no exemption available for Adjusted Gross Income(AGI) of over $55,000 if single or over $72,000 if you're married and file jointly.
Medicare & Social Security
In addition to federal and possibly state income taxes, you will pay Social Security and Medicare taxes on any wages earned in retirement. There is no age limit on these withholdings, nor any exemption for any sort of Social Security benefits status.
These earnings can also count toward the calculation of your benefits. The Social Security Administration checks your earnings record each year and will increase your benefit, if appropriate, based on these additional earnings.
If you are making much less in retirement than before, could it hurt your benefits?
No. This is because the benefit payment is still based on your 35 highest years of earnings. At worst, there would be no impact; at best, it could help if this replaces any of the lower 35 years.
Note: Your earnings may not only push you into a higher tax bracket, but also into a higher threshold for your Medicare premiums once you are over 65. Medicare sets the cost (premium) for Part B each year at a fixed rate for most participants ($202.90 a month for 2026), but it increases for individuals with an annual income over $109,000 and married couples with an annual income above $218,000. The cost for these higher-earning participants can range from $284.10 to $689.90 per month.
If your income is above a certain level, you may have to pay IRMAA (Income-Related Monthly Adjusted Amount) in addition to your Part B or Part D premium. We recommend you consult with a tax professional for more details on whether or not you are affected.
Can I Contribute to a Retirement Account?
Another key advantage of ongoing earned income even after you collect Social Security is that you can keep contributing to your retirement savings accounts like traditional IRAs, health savings accounts (HSAs), Roth IRAs, and 401(k)s.
Note: If you are over 72, you will have to take the required minimum distribution (RMD) from your traditional IRA, except for during the 2020 pause because of COVID-19.
Your traditional 401(k), or similar Entergy retirement plan, is a different story. In general, you can continue stashing away money in your current Entergy-provided plan as long as you're still working, even part-time, and you can delay taking your RMD until after you retire.
These additional savings can help, especially if your savings are running a bit behind your goals. The combination of the added savings, tax-deferred growth potential, and the ability to defer tapping into your savings can be powerful, even at the end of your working career.
As you plan your transition from Entergy into retirement, understanding the company's benefit structure can help you make more informed decisions. According to publicly available information, Entergy maintains an active defined benefit pension plan, which provides retirement income based on factors such as years of service and compensation history. Entergy also offers retiree healthcare benefits to eligible employees, which can provide meaningful coverage for those who retire before reaching Medicare eligibility at age 65. Entergy's 401(k) plan includes employer matching contributions of Match on basic contributions up to 5% of eligible earnings + 4% annual company retirement contribution (automatic), subject to plan terms. Because the specifics of your pension formula, vesting schedule, and benefit eligibility depend on your individual employment history and plan documents, We encourage you to review your Summary Plan Description (SPD) or speak with Entergy's HR or benefits team for the most current details.
How does Entergy Nuclear Operations, Inc. determine the eligibility criteria for employees participating in the pension plan, and what specific conditions must be met for an employee to qualify for benefits under Appendix G of the Plan?
Eligibility Criteria for Pension Plan: Entergy Nuclear Operations, Inc. determines pension eligibility based on Vesting Service and age. Employees generally become 100% vested after five years of service or upon reaching age 61 while employed. Special provisions may apply to employees who participated in the Vermont Yankee Plan as of July 31, 2002(Entergy_Nuclear_Operati…).
What are the specific steps and necessary documentation required for an employee of Entergy Nuclear Operations, Inc. to commence their pension benefits once they reach retirement age, and how does this process differ for those with previous employment at other participating companies?
Commencing Pension Benefits: To commence pension benefits, an employee must file an application with the Entergy Pension Resource Center (EPRC). This includes providing necessary documentation, such as proof of age and employment history. Employees who have worked for other participating companies must account for service under prior employers, which may impact the pension calculation(Entergy_Nuclear_Operati…).
In what ways does Entergy Nuclear Operations, Inc. ensure that employees understand their rights under the Employee Retirement Income Security Act (ERISA), and what resources are available for employees seeking clarification on their pension benefits?
ERISA Rights and Resources: Entergy Nuclear Operations, Inc. ensures employees understand their rights under the Employee Retirement Income Security Act (ERISA) by providing access to the plan documents and offering assistance through the Entergy Pension Resource Center. Employees can request clarification on pension benefits by contacting EPRC(Entergy_Nuclear_Operati…).
How does the non-bargaining and bargaining employee classification at Entergy Nuclear Operations, Inc. impact the pension benefits available, and what should employees consider when planning for retirement in light of these classifications?
Impact of Non-Bargaining and Bargaining Classifications: The classification between non-bargaining and bargaining employees affects pension benefits. Non-bargaining employees are covered under Appendix G of the Plan, which may provide different accrual rates and benefit options compared to bargaining employees. These classifications impact retirement planning, as different rules may apply depending on the classification(Entergy_Nuclear_Operati…).
What provisions are in place at Entergy Nuclear Operations, Inc. for beneficiaries to receive benefits upon an employee's death, and how do these benefits differ based on whether the employee had already commenced their pension?
Death Benefits for Beneficiaries: In the event of an employee's death, the Entergy pension plan provides benefits to beneficiaries. If the employee has already commenced pension payments, the form of payment selected will determine the survivor benefits. If the employee passes away before starting pension benefits, the spouse may receive pre-retirement survivor benefits(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. calculate the normal retirement pension, and what factors play a crucial role in determining an employee's monthly benefit under Appendix G of the Plan?
Pension Calculation Factors: The normal retirement pension at Entergy Nuclear Operations, Inc. is calculated using a formula based on Average Earnings and years of Benefit Service. The formula includes percentages of earnings, capped at certain limits, and service years to determine the monthly pension benefit under Appendix G(Entergy_Nuclear_Operati…).
What unique considerations should employees of Entergy Nuclear Operations, Inc. keep in mind regarding service credits, particularly if they have accrued time under a prior employer's defined benefit plan?
Service Credits for Prior Employers: Employees with service under a prior employer's defined benefit plan may have their service credited toward the pension plan at Entergy Nuclear Operations, Inc. This includes specific provisions for employees from companies like Vermont Yankee. Service credits from prior employers may affect both vesting and benefit calculations(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. handle the transition of employees who transfer from covered employment with the potential for pension benefits, and what impact does this have on their accrued service time?
Impact of Employee Transfers on Pensions: If an employee transfers from covered employment (i.e., eligible for the pension plan) to a position not covered by the plan, their Benefit Service is frozen. However, Vesting Service continues to accrue as long as the employee remains with the company, and previous service may impact final pension benefits(Entergy_Nuclear_Operati…).
What specific contact methods are available for employees of Entergy Nuclear Operations, Inc. to reach the Entergy Pension Resource Center for assistance regarding their pension benefits, and what type of inquiries can the center effectively handle?
Contacting the Entergy Pension Resource Center: Employees can contact the Entergy Pension Resource Center (EPRC) for assistance with their pension benefits via phone at 1-855-523-3772 or online at EPRC Website. Inquiries can include questions about benefits, beneficiary designations, and how to commence pension payments(Entergy_Nuclear_Operati…).
In what scenarios might an employee's pension benefits at Entergy Nuclear Operations, Inc. be suspended, and what steps can be taken to appeal or rectify such situations once they occur?
Suspension of Pension Benefits: Pension benefits may be suspended if an employee is rehired after retirement and works more than 40 hours in a month. Employees who experience benefit suspensions can have their pension recalculated upon final retirement, with offsets for any benefits previously received(Entergy_Nuclear_Operati…).
For more information you can reach the plan administrator for Entergy at , ; or by calling them at .
https://www.pbgc.gov/
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